Key Takeaways
- US Treasury Secretary Scott Bessent expressed strong confidence that the government will prevail in a Supreme Court ruling on tariffs, though he acknowledged a potential refund liability if the decision is unfavorable.
- Bessent indicated that revisions for 2024 jobs data could see a significant reduction of 800,000, suggesting a weaker labor market than previously understood and aligning with former President Donald Trump's criticism of the Federal Reserve's tardiness.
- Geopolitical tensions escalated dramatically with a Houthi drone attack on Israel's Ramon Airport, leading to the closure of its airspace and causing injuries.
- In London, 890 arrests were made at a Palestine action demonstration, highlighting ongoing social unrest.
- Diplomatic efforts and condemnations continued regarding the Russia-Ukraine war, with President Trump discussing Russia with the EU Chief and UK Labour leader Keir Starmer criticizing Vladimir Putin's lack of commitment to peace.
US Treasury Secretary Scott Bessent has voiced strong confidence that the government will win its Supreme Court appeal regarding the legality of Trump-era tariffs, which a federal appeals court recently deemed unlawful. Bessent, however, conceded that the administration would be obligated to pay refunds if the Supreme Court rules against the tariffs, a move that could entail substantial financial implications for importers. He emphasized that the administration has a "Plan B" should the Supreme Court not uphold the president's authority to use the 1977 International Emergency Economic Powers Act (IEEPA) for imposing these tariffs.
On the domestic economic front, Bessent signaled that revisions for 2024 jobs data could result in a significant reduction of 800,000 jobs. This potential downward adjustment for the period of April 2023 through March 2024 suggests a considerably weaker labor market than initially reported. Bessent linked these figures to former President Trump's critique of the Federal Reserve, stating that the jobs data indicates Trump was correct to criticize the Fed's tardiness in its policy actions. Despite these significant revisions, Bessent affirmed that the Treasury is "not altering economic policy off one number," indicating a measured approach to economic strategy.
Geopolitical tensions flared in the Middle East as a Houthi drone launched from Yemen struck the Ramon Airport area in southern Israel, prompting the closure of Israeli airspace above the airport. The Israel Defense Forces (IDF) confirmed the incident and initiated a review, noting that no sirens sounded during the attack. This attack caused at least one injury from shrapnel and another person to experience a panic attack. Meanwhile, London police reported 890 arrests at a Palestine action demonstration in central London, with many arrested under the Terrorism Act for supporting a proscribed group.
In broader international news, US Treasury Secretary Bessent confirmed that President Trump spoke with the EU Chief on Friday regarding Russia. This discussion comes as UK Labour leader Keir Starmer condemned the "latest strikes on Ukraine," asserting that Russian President Vladimir Putin does not take peace seriously. Separately, diplomatic engagements continued in the Middle East, with President of the UAE Sheikh Mohammed bin Zayed meeting with the Jordanian monarch, King Abdullah, in Abu Dhabi.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.